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Two Ways To Play: Bumpy Ride for JPMorgan

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Strengthen your portfolio in good times and bad.

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JPMorgan in Focus

This morning Wall Street is digesting the earnings announcement from JPMorgan Chase (JPM). According to Bloomberg, the second-largest bank in the US reported fourth quarter profits of $702 million, or 7 cents a share, beating analysts' estimates of $0.00 per share. Revenues fell 0.9% year-over-year to $17.23 bln vs. $18.83 bln consensus.

The company blamed the disappointing results on declines in the investment banking business as markdowns on leveraged loans and mortgage trading continued. JPM is also forecasting higher credit costs in the future, but does see underlying growth in many business areas. Shares are currently up over 3% in premarket trading.

From the Bull Pen: JPM's results are a relief to bulls for now. Continue to watch the financial sector for improvement which could pave the way for a rally. For a trade, Research In Motion (RIMM) has shown good relative performance and sell stops can be set near $43-44.

From the Bear Cave: Bears can look to Johnson & Johnson (JNJ). The stock has broken the uptrend and surrendered its 50 DMA ($58.80). Those testing the downside can set a buy stop above that level.


Quick Check Around the World

Asian trading closed with the Hang Seng -3.37%, Nikkei -4.92%, Sensex -3.45%, Taiwan -4.44% and Shanghai -0.45%.

Glancing towards Europe, we see the CAC -0.85%, DAX -0.98%, FTSE -0.86%

As of 8:25 a.m. EST, S&P futures are trading -7 to 833.00, and Nasdaq futures are -2 to 1150.00.


A Look At Commodities

Crude oil is trading -0.06 to 37.22. Gold is +0.70 to 809.50. Silver is -0.05 to 10.470, and copper is -3.05 to 147.70.

The dollar index is +0.280 to 85.4500.


On the Radar

Economics

08:30 Producer Price Index MoM -2.0%
08:30 Producer Price Index YoY
08:30 Initial Jobless Claims
08:30 Continuing Claims
08:30 Empire Manufacturing -24.50
10:00 Philadelphia Fed. -35.0

Click here for the full trading radar.

Hump day! Good luck!
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No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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